Globe Telecom secures P3-B loan for capex

ABS-CBN News

MANILA - Ayala-led Globe Telecom Inc. on Thursday obtained a fresh P3-billion loan (about $64 million) from the Union Bank of the Philippines to finance its capital spending this year.

"The proceeds of the facility will be used to finance the company's capital expenditures and general corporate requirements," Globe Telecom told the Philippine Stock Exchange.

Globe Telecom, the country's second-largest telecommunications firm, has earmarked $500 million for capital expenditures this year. It is looking at the same amount for its 2010 capex.

As of end-September, Globe Telecom has already spent $400 million mainly for a second fiber-optic network backbone that runs from Luzon to Mindanao.

A joint venture of local conglomerate Ayala Corp. and Singapore Telecommunications Ltd., Globe Telecom reported a 12.3% rise in its third-quarter profits, driven mainly by an after-tax gain from an equipment exchange transaction with a supplier.